a web page that shows facility utilization % by
If you go to this page, and scroll down to the
privately managed prisons section, they show data on the
Eloy Detention Center. As I understand it, this is a
CCA/PZN facility for federal inmates. The data they show
on the page is as of May 21,1999. It shows only 1195
of 1500 beds occupied, 79% utilization.
does not seem to jibe with the press release that was
put out by the comapny which indicated all beds in
the federal system are at 100% capacity.
anyone understand this? Is this definitely a PZN
facility? Are all the beds supposed to be for Federal
Inmates?? I am confused.
really trying to get to bottom of this, if can
understand a few key issues, would be helpful. stock seems
cheap, prison industry has had great fundamentals, and
pzn dominates the marketspace. however, also some
inconsistencies i need to work through to get comfortable
(previous post). chatter on this page seems to have died
Eloy has enough "room" to accommodate as many as
1500 inmates, its "rated occupancy."
due to inadequate sewer capacity serving the
facility, the BOP has "certified" its capacity for a
maximum of 1204 inmates. This lesser effective capacity
has prevailed for several years and Eloy has not
exceeded its BOP limited "certified capacity" nor is it
presently contemplated that the sewer capacity restriction
will be relieved to enable utilization of Eloy's rated
capacity. Staffing @ Eloy has been set at the 1204 bed
maximum level for the past 3 years.
If 1195 beds
are occupied, that would represent 99.25% of Eloy's
Most facilities estimate costs based on a 95%
occupancy rate. There is usually a lot of inmate movement
(to hospitals, other facilities, trial locations,)
and facilities are rarely, if ever, full.
beds are left unused in case of emergencies, or
sidebar contracts held with other law enforcement
Many facilities house different types of prisoners.
Some arrange to accept county or out-of-county
detainees, state prisoners, Border Patrol/INS detainees,
etc. So, a facility may be at capacity, but have a
variety of inmates, not all of one designation.
It's to PZN credit that they have not exceeded
capacity. All the
federal prisons are over capacity and
law suits are filed against
them...Elroy is split
in two separate sections and this could cause some
mis-calculation...The fed. has to pay the private co.
like PZN per
day for prisoners transferred to thier
Keep the bad news comming so we can find the real
I hope the share price is slow to rise so I can
DRIP at the low price.. The expansion program is
ongoing and the money flow will
eventually brings the price up. In the interim...
what is a very nice dividend...
I appreciate the fact you have your personal
opinion about the characters of management and I'm sorry
people feel that way.
I do not have information
to prove or disprove any personal character
references and I'm not really interested other then to make
sure nothing illegal is happening.
background is financial and with Wall Street. I feel I do
understand the purpose of the merger and think it has great
merits and and am not paid by the comapny for any
reason. Financial engineering is far more prevelant then
you know...from GE to GM. Why...taxes. If you can
save 40% or 5% in tax payments it makes you that much
more competitive versus your competitors. Think about
it. With such large profit margins PZN can issue
stock at prices in the mid single numbers and have it
Like any business nothing goes
100% as planned. At that junction you have to make a
decision what in your future. If the business and profit
margins are there the rest can be worked out. PZN is in
Look at salaries of other firms
and tell me this only happens at PZN. Doc sold I was
told due tax reasons...a big tax bill from options.
But who cares if he sold. Can't they diversify?
To tell you the truth I'm worried about me. I want
to figure what I�m going to do. All stocks that go
down have the doomsday people come out of the
woodwork. Some of the predictions come true..most do not.
My concern is how the business is doing and how it's
being run. Honestly and effectively...that's the bottom
line to me. I not interested in being their best
friend, that's not their job.
Management's job in
my opinion to tend to it's job of building a
successful business. Creating shareholder wealth. Does this
mean higher share prices, in the long term.
made a lot of money because of Bob Crants spin out
REIT structure...I think he was underpaid.
thats sad,you are missing the whole point i was
trying to make.pay the saleries,get and keep better
quality emploies who in turn will produce better quality
of job preformance,then the pzn operated facilities
will not be faced with the security problems which
they have been faced with for the past few years.
I have just started investing in PZN this last
week. I invest in div. paying value stocks and bonds. I
could buy goverment bonds at less then 6%--Corp. bonds
at 7-8%, junk bonds at 8-12%, or emerging market
bonds at 12-13%. I have also researched all the
closed-end div. paying funds.I have researched all the REITs
and compared all the financial ratio comparisons for
REITs. A large REIT like Simon Property Group has a
Debt/Equity ratio of 2.48, pays a 6.92% dividend, and recent
price of 29. Does anyone think that is a better buy
then PZN at a Debt/Equity ratio of less then .50, 16%
div., and price of 13!
Before investing in PZN
I studies their Annual Report, 10Q, merger proposal
of last year, and read all the messages on this
board. I understand all the pros and cons. I can
understand that people who invested at 40 would be unhappy.
But PZN is now 13...for the life of me I can't find a
better div. paying value stock!! With the special div. I
am going to get well over 20% just in div. through
the end of this year and over 15% next year even if
the stock does not go up...Is PZN more risky then
emerging markets??? I think not. And PZN is growing and
will be increasing the div. I do not believe they are
going out of business so please tell me a better div.
paying stock to buy.
Those who are negative on
the stock shouldn't look at the past -- look at what
it sells for today and the growth of the company
over the next few years. I just wish I had more money
to invest and I have already invested a lot.....of
course all bets are off if in fact management is
involved in illegal acts.. which I don't think they
For those buying at these levels the future is indeed
if I overreacted and missed your intent, though
my opinion still holds. I don't believe that PZN has
any more security problems than government-run
prisons (actually PZN has none as they don't run the
prisons). The link we were given a few posts back had a
story about an escape from a county jail right next to
the one relevant to us. I don't think management
needs to be ousted. I don't think they need to change
anything. There are groups and individuals who want to see
the company ruined and who were waiting for Doc to
make a mistake so they could hammer on him. This is my
personal belief. I appreciate the dialogue on this board.
with you. However the big blemish on PZM remains
Investor confidence in management. No matter how you cut
it the failure for the management team to disclose
all information hurt everyone concerned. I don't
beleive that Doc and Jr. are a bunch of crooks but they
lack a good PR dept. They have a problem of
communication with investors with their don't give a shit
attitude. Even worse is their attitude to Wall St. A
meesage to the wise if you continue to post watch
the,,,,,,,,,,,,,,,,,,,,,,,,,,,,comas (see previous posts)
but yes they do run prisons,there are three in
tennessee under there control,all of which has serious
security problems which keep them under close eye of the
state.all of which have somewhat undesireable staffing
problems due to the type people they have to hire because
of low wages.
Higher salaries may attract better staff, but I
would place company culture and values ahead of
salaries for getting the type and quality of staff you
Wal-Mart doesn't pay their line help hardly anything, but
they have great staff because they have a great
culture (their managers do appear to make bucks,
I don't know much about the quality of CCA's
culture, but their wages are a bit on the low side;
however, they are not having major problems finding guards
to work for them.
I think that private
enterprise is simply better and that competition is a good
thing even if private prisons only get 25% of the
market it will be good for everyone including the
The future WAS BRIGHT for those buying old CCA at
30 and new PZN at 20. This company is controlled by
DOC and his Band. If you can't trust the Management,
you have NO IDEA WHAT FUTURE IS HOLDING FOR YOU!!